New Guide Bulletin Published
September 1, 2016
With this Bulletin for the Multifamily Seller/Servicer Guide (Guide), we are eliminating the requirement for Seller/Servicers to deliver compliance certifications during the underwriting process (OFAC Compliance, FHFA Suspended Counterparty Program (SCP), and Freddie Mac Exclusionary List). Although you no longer need to submit the certification to us, as a Seller/Servicer, you must continue to screen applicable parties against these lists.
Additionally, with this Bulletin, we're removing the Program Plus® name and renaming this designation Freddie Mac Multifamily Approved Seller for Conventional Loans. This does not affect your current approval status with us; we’re simply retiring the brand name. More details about this change will be communicated soon.
The updated Guide includes the following additional changes:
- Applying the same consolidated final delivery process to both SBL and non-SBL mortgages
- Revising our environmental requirements to clarify when Freddie Mac will permit remediation of an environmental deficiency after the Origination Date and to specify that for an SBL Mortgage, a Repair Reserve must be at least 100 percent of the amount of any remediation contract
- Updating our seismic requirements as a result of new standards from the American Society for Testing and Materials (ASTM)
- Adding a requirement for sizing acquisition mortgages
- Adding a clarification regarding minimum origination fees for SBL Mortgages
- Providing a new table of Servicing Spreads for conventional cash and Supplemental Mortgages
- Revising the seasoning requirement for a First Mortgage
- Revising our requirements for co-marketing with the Freddie Mac Multifamily name, logo, graphic or offerings
- For Forward Commitments, requiring an environmental assessment report at the time of Conversion and specifying that the Chief Architect/Engineer must review construction-related documentation
- Adding requirements for post-purchase reporting for Value-Add Mortgages
- Requiring the Servicer to submit to Freddie Mac the approval letter that it provides to the Borrower when the Servicer approves the extension of a Repair Agreement
- Updating Exhibit 2, Origination Guidelines for Targeted Affordable Housing Mortgages, and stating which Mortgages with affordability components can be originated and sold by Conventional Seller/Servicers
- Making minor rewording changes concerning electrical capacity
Refer to the complete Guide here. If you have any questions about this Bulletin, please call your Freddie Mac representative.